Committee to Examine Sarbanes-Oxley Act’s Impact on Small Companies

WASHINGTON – Jack E. Herstein, Assistant Director of the Nebraska Department of Banking & Finance Bureau of Securities and Vice Chair of the Corporation Finance Section of the North American Securities Administrators Association (NASAA) today began serving as an official observer of the Securities and Exchange Commission’s Advisory Committee on Smaller Public Companies.

In his capacity as an observer, Herstein will represent the interests of NASAA members in the committee’s deliberations.

The Advisory Committee, which consists of 21 members and three observers, held its first meeting today. It was established by SEC Chairman William Donaldson to examine the impact of the Sarbanes-Oxley Act and other aspects of the federal securities laws on smaller companies.

“Over two years have passed since the Sarbanes-Oxley Act was enacted into law, and it is very timely to review its impact on smaller public companies,” NASAA President and New Jersey Securities Bureau Chief Franklin L. Widmann said. “State securities regulators have long been leaders in developing and administering programs that help to facilitate small business capital formation consistent with their mission of investor protection. As small business experts, state securities regulators are extremely interested in the issues to be addressed by the committee and we stand ready to provide our assistance as the committee moves forward with this important initiative.”

NASAA is the oldest international organization devoted to investor protection. Its membership consists of the securities administrators in the 50 states, the District of Columbia, Puerto Rico, Canada, and Mexico.

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Bob Webster
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